(Mines and Steel Development Reports) The Minister of Mines and Steel Development, Musa Mohammed Sada and the Minister of Industry, Trade and Investment, Olusegun Aganga have recently staged a ‘One – Day Stakeholders’ Forum’ in Lagos with the theme: “Transformation of Minerals, Iron and Steel Sub-Sector for Industrial Revolution in Nigeria.”
Speakers at the forum declared that one of the cardinal objectives of the President Goodluck Jonathan administration is to transform the steel sector towards enhancing the rapid industrialisation of the nation. Adding, no nation can become great without the production of steel. “Countries like Japan, Russia, America and a host of others are great today because they have been able to achieve this feat,” they said.
The Permanent Secretary in the Federal Ministry of Industry, Trade and Investment represented by the Director of Industrial Development and Inspectorate, Oladele Jaiyeoba in the opening remarks at the occasion said that the forum was designed to ensure that all relevant stakeholders including MDAs along the value chain are carried along towards transforming the minerals, iron and steel sub-sector for industrial revolution. He applauded the uniqueness of the ongoing collaboration activities between the two ministries and assured that the outcome of the forum will be used as guide for transforming the minerals, iron and steel sub-sector.
In his presentation during the event, the Minister of Mines and Steel Development, Musa Mohammed Sada extolled the key role of iron and steel in national development as well as the ministry’s efforts to participate in the Nigeria Industrial Revolution Plan piloted by the Federal Ministry of Industry, Trade and Investment. He revered the role which the Ministry has played in the transformation of the country’s solid minerals and metals sector into a tool for domestic growth and for the achievement of a high global relevance.
He further disclosed that the Ministry is promoting a backward integration policy in the sector with a view to increase the present 2.5 million tonnes local production of iron and steel per annum to about 15 million tonnes as envisaged by the year 2020 through utilization of local raw materials. He indicated that a lot has been done to establish an environmentally friendly, effective and sustainable legal regulatory framework.
Musa Mohammed Sada revealed that the draft Metallurgical Industry Bill is ready for transmission to the National Assembly for passage. He also called on the stakeholders to venture into the acquisition of mining titles towards obtaining the raw materials for their operations.
On the importance of the minerals, iron and steel sub-sector, he explained that Nigeria’s Industrial Revolution Plan (NIRP) is the nation’s first comprehensive, integrated and strategic roadmap to industrialization. He further stated that the sub-sector is one of the four identified with comparative and competitive advantage towards making Nigeria self sufficient with an end to end integration from iron ore mining to crude steel production.
The other three sectors, he indicated include: the agro-allied, oil and gas industrial activities and construction as well as light manufacturing and services.
“Our strength lies on the abundant raw materials for iron and steel production with Nigeria as the twelfth richest in the world and the second in Africa in iron ore deposits. With an estimated market of about US$3.5 million and 53million trainable workforce, Nigeria is positioned to transform the metals and solid minerals sector and assimilate it into other key development plans in Nigeria,” he opined.
He noted that credible players need to be attracted into the upstream mining sub-sector and downstream processing of steel-related products encouraged through the backward integration procedure and deepening of the existing mechanisms.
The Permanent Secretary in the Ministry of Mines and Steel Development, Sunday Jegede while thanking the participants for attending the forum, lauded the efforts of the two Ministers for their strides towards transforming the iron and steel sub-sector as a strategic component of the Industrial Revolution Plan.
A communiqué issued at the end of the question and answer session and deliberations by syndicate groups has called on the government to encourage steel production as a fully integral system towards facilitating the creation of local jobs and skill acquisition. Also, the government should encourage upstream sector development of mining activities by taking over the proven asset of the exploration and the release of funds for actual mining.
According to the communiqué released at the end of the forum, the event was purposed to
highlight the desire and aspiration of Government for rapid economic development, present the sub-sector blue-print of the Nigeria Industrial Revolution Plan (NIRP) as well as the efforts of the Ministry to reposition the minerals, iron and steel sub-sector.
The forum further agreed that an intervention fund for investors in the sector of similar magnitude to the Power Intervention Fund which prescribes borrowing at 7% for a term of fifteen years should be established and a sovereign loan to support investments in the sector provided.
“Synergy among manufacturers, research institutes, universities, colleges of technology, among others to accelerate the development of skills and job creation in the sector should promoted and employment for expatriates in the absence of qualified Nigerians for such jobs ensured,” it said.
The communiqué called for partnership between the Nigerian government and the organized private sector towards implementing the backward integration of existing facilities within the sector as well as sustaining and strengthening it. Adding, the government and investors in the sector should collaborate to upgrade the much needed infrastructural support for the sector and the support from government to the sector be stepped up to institutionalize incentives and concessions to guarantee smooth operations for all players in the sector.
‘Government, it said should promulgate policies that will guarantee the use and consumption of locally produced iron and steel products for all her projects in the country. It stressed the need for completion of the spur line from Otukpo – Ajaokuta – Warri as well as the rehabilitation of the Port Harcourt – Maiduguri rail line.
Other issues raised were the need for encouragement of collaborative efforts between foreign and local investors in the sector and need for operators in the sector to ensure that all their activities meet world best practices in the industry, so as to guarantee quality products and environmental friendliness.
“The development of a National Quality Framework should be fast-tracked with a view to upbraid Nigerian Standards and enforce adherence to its provisions by all players in the sector. Activities should also be aligned in favour of local production, while ensuring that intellectual property rights in respect of innovations are honoured,” the communiqué revealed.
Investors in the sector were urged to establish sound corporate social responsibility relationships with their respective host communities as it obtains in the oil and gas sector.
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